‘This Is Not a Normal Recession’: Banks Ready for Wave of Coronavirus Defaults

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‘This Is Not a Normal Recession’: Banks Ready for Wave of Coronavirus Defaults

The largest U.S. banks signaled that the worst of the coronavirus recession is yet to come, opting to stow away tens of billions of dollars to prepare for an expected wave of loan losses.

JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. said Tuesday they took large hits to their second-quarter profits to collectively stockpile $28 billion to cover losses as consumers and businesses start to default on their loans.

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